Section 53A provides that where the buyer has obtained possession of the property that is subject matter of the transfer, while fully complying with his part of the obligation under the agreement, the seller shall not be entitled to disturb the possession so granted to the buyer. It may be noted that Section 53A provides a shield to the proposed transferee against the transferor and debars the transferor from disturbing possession of the transferee, but it does not cure the title of the buyer to the property.
The ownership of the property still remains with the seller. So, in the cases where you have purchased any property under a sales agreement and got possession, the title of the property still remains with the developer, unless a sale deed subsequently has been executed and registered under the Indian Registration Act.
Thus, it becomes clear that a title in an immovable property can only be transferred by a sale deed. In the absence of a duly stamped and registered sale deed, no right, title or interest in an immovable property, accrue to the buyer of the property. It is the responsibility of the buyer to pay the stamp duty and the registration fee for registration of the sale deed. It is the responsibility of the buyer to pay the stamp duty and the registration fee for the registration of agreement for sale.
In case a property deal cannot be materialized after the sale agreement is executed, each party will have to settle the matter based on the terms and conditions stated in the sale agreement.
If the sale could not complete because of a fault of the buyer, the seller may be entitled to not refund the earnest deposit or token money given by the buyer. In case the seller is responsible for the sale deal to be unsuccessful, he may have to compensate the buyer for loss of time and mental agony. An agreement for sale, is an agreement to sell a property in future. This agreement specifies the terms and conditions, under which the property in question will be transferred.
The sale deed is the main legal document by which a seller transfers his property right to the purchaser, who then acquires absolute ownership of the property. An agreement for sale is a promise in future, that the property will be transferred to the rightful owner while sale deed is the actual transfer of property ownership to the buyer.
Skip to content. Table of Contents What is an agreement to sell? What is a sale deed? Agreement for sale versus sale deed Importance of agreement for sale Can sale agreement be verbal? Agreement for sale format for property Can verbal agreements be challenged in court? Is sale deed the same as conveyance deed? Sale agreement at the time of property registration Supreme Court ruling on sale deed and agreement for sale Consequence of failure to execute a sale deed FAQs.
What is agreement for sale? What is sale deed? What is the difference between agreement for sale and sale deed? Was this article useful? Related Posts Stamp duty and taxation on exchange of property. Legal tips for buying agricultural land in India. Real estate basics: What is a conveyance deed?. The important characteristics of a sale deed are:. Sale deed includes general terms and conditions of property sale like details about the property being transacted, current owners seller , new owner buyers of property, detail of loans if any , utility payments like water and electricity, statutory payment like property tax, details of transfer of property title, rights and ownership, agreed amount of transaction and payment mode full or part and indemnity clauses.
The two terms, conveyance deed and sale deed, are used very frequently in real estate transactions and not many of us know the difference between the two. To put it simply, these terms many-a-times are used interchangeably.
However, there is only a small difference between these two documents — a sale deed is a type of conveyance deed whereas the conveyance deed is not considered as a sale deed. While there are so many jargons that you hear related to property documents , it is important to know various types of conveyance deeds that can be executed.
There are three:. Freehold Conveyance — This means the owner of the property has free right on the property including both internal and external structure. Leasehold Conveyance Deed — This means the owner of the property only has rights within the four walls of the property and not the external structure.
Generally, the common area and the building is owned by the landlord. Mortgaged Conveyance Deed — This means that the property is mortgaged with a bank or financial institution.
However, the owner can enter and enjoy the privileges related to the property. It is also important to know the contents that go in a conveyance deed before two parties sign it.
A conveyance deed document should have details about area of the property demarcation , details of annexed property, full chain of titles leading up to the current owner seller , details of property handover to buyer, possession letter s and all terms and conditions of the property transaction.
Any person must also take care of following while executing a conveyance deed:. The owner of the property seller must certify that the property is free of any legal restrictions or disputes. The seller should also produce the authorised payment receipts of utility payments like water, electricity and gas to the buyer.
The seller should also clear the property tax dues prior to execution of the deed and share the authorised payment receipts with the buyer. The buyer must pay TDS on property sale amount to the respective state government and submit the receipt to the seller. In case there is some loan taken against the property, it should also have details of the loan. The seller should clear the outstanding amount to the lender before executing the deed. The seller should convey the exact date by which the final possession of property will be given to the buyer.
The conveyance deed should be executed in presence of two witnesses and they must sign the conveyance deed to mark their presence. This should be followed by payment of stamp duty and registration fee to the respective state government. Those who read this Article also Consulted a Lawyer about Conveyance deed. However, if a Conveyance Deed in entered into for transferring the legal title of property from one person to another via a sale, then that Conveyance Deed would be termed as a Sale Deed.
Hence, it can be said that a Sale Deed is actually a form or a type of Conveyance Deed. Other types of Conveyance Deeds may include gift deed, exchange deed, mortgage deed, etc. Image Courtesy: onlinepropertyregistration. Difference between Sale Deed and Conveyance Deed. Key difference: In law, conveyance is the transfer of legal title of property from one person to another.
The main difference is that the Sale Deed transfers the legal title of property from one person to another in case of a sale. Whereas, a Conveyance Deed can transfer the legal title of property from one person to another in case of a gift, an exchange, a lease i.
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